Why SAIC Stock Is Rising Today
Key Points
SAIC reported its second-quarter 2027 financial results this morning before the market opened.
Shares of SAIC are trading at a discount to their historical average.
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Poised to end August on an auspicious note, shares of Science Applications International (NASDAQ: SAIC) are rising following the company's reporting of second-quarter 2027 financial results this morning before the market opened.
As of 10:24 a.m. ET, shares of the digital solutions company are up 3.2%, retreating from an earlier 13.3% rise.
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Improved 2027 guidance has investors eager to pick up shares
Beating analysts' expectations of $1.76 billion, SAIC reported Q2 2027 sales of $1.88 billion, a 6% year-over-year increase. The bottom of the income statement also provided a surprise. While analysts anticipated SAIC would post adjusted earnings per share (EPS) of $2.31, SAIC reported adjusted EPS of $3.01.
In addition to the company's recent performance, management's upwardly revised fiscal 2027 guidance is providing another catalyst for SAIC stock's rise. Up from $7 billion to $7.2 billion, management now projects 2027 revenue of $7.2-$7.3 billion; moreover, adjusted diluted EPS guidance was raised to $10.65-$10.75 from $9.90-$10.10.
SAIC's fiscal 2027 free cash flow forecast -- at least $600 million -- remained unchanged.
Is it too late to pick up shares of SAIC?
Having received awards from several U.S. military branches and intelligence agencies last quarter, SAIC continues to deliver digital solutions that the U.S. government finds valuable. Fortunately for investors seeking tech stock exposure, SAIC shares are available at a discount, trading at 8.1 times operating cash flow -- below their five-year average cash flow multiple of 10.4.
Should you buy stock in Science Applications International right now?
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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